Amazon CEO Salary Is The Subject Of Controversy

Two investor consulting firms, Amazon CEO Andrew Jassyof $214 million salary says it’s too much. Firms are also demanding an open vote on whether the salary is too high at the meeting to be held this month.

Financial TimesAccording to a news published by I, which provides consultancy services to investors,Institutional Shareholder Services (ISS) “The $214 million salary of Amazon’s new CEO, Andy Jassy, ​​is a lot for this kind of promotion,” he said in a report he shared with clients on Thursday. made statements. The report also states that the compensation program has nothing to do with objective, predetermined performance criteria.

ISS and Glass Lewis call for votes

ISS is the world’s largest investor advisory firm. It advises the shareholders of listed companies on how they should vote.

Besides the ISS, there is another consulting firm calling on shareholders to vote against unreasonable salaries at Amazon. According to the news Glass LewisThere’s a big difference between the salaries and bonuses that Amazon’s top executives received in the past week. Both firms are recommending that shareholders vote at the company’s annual meeting scheduled for May 25 to reject bonus packages received by Amazon’s top executives.

Much of Jassy’s compensation came from shares.

Jassy, ​​July He took over the CEO of Amazon from Jeff Bezos. In 2021, Jassy received a total of $212,701,169 in compensation, of which only 175 thousand dollars from his salary came. The rest came from shares.

A spokesperson for Amazon said in a statement: According to the way of working, we need to report this wage as the total compensation for 2021. In reality, this fee will be valid for the next 10 years,” he said.

The spokesperson concluded, “What this equates to from an annual pay perspective is that it’s competitive with CEOs at other large companies. It’s also been approved by the Amazon Board of Directors.”

Jassy isn’t the only manager whose salary is questioned

According to Amazon’s filing with the SEC, shareholders Adam Selipsky and Dave ClarkIt is expected that ‘s fees will be taken into account in the voting to be held this month. Selipsky, the head of Amazon Web Services, will almost certainly have a five-year stock grant in 2021. 81.5 million dollars won. Clark runs Amazon’s retail and logistics business. to Clark last year 56 million dollars paid.